Assume that the price for a pair of shoes has been set at $20. The demand for a pair of shoes is given by and the supply for the same pair of shoes is . In both cases p is price per pair and q is the quantity produced or sold. Compare the quantity demanded and the quantity supplied. Will there be a surplus or shortfall at this price?
A) There will be a shortfall.
B) There will be a surplus.

Question

Assume that the price for a pair of shoes has been set at $20. The demand for a pair of shoes is given by  and the supply for the same pair of shoes is  . In both cases p is price per pair and q is the quantity produced or sold. Compare the quantity demanded and the quantity supplied. Will there be a surplus or shortfall at this price? ​
A) There will be a shortfall. 
B) There will be a surplus.

Quizplus · Accepted Answer

At the given price of $20, the quantity demanded is 60 pairs of shoes (11ea984b_afe0_dd87_9029_4f0abfa4300f_TB4005_00) and the quantity supplied is 40 pairs of shoes (11ea984b_afe0_dd88_9029_95569e80d7e2_TB4005_00). Since the quantity demanded exceeds the quantity supplied, there will be a shortfall. Therefore, choice A is the correct answer.

Assume That the Price for a Pair of Shoes Has